Calculate the resulting cash flow and state the nature of cash flow from the following information:
Acquired machinery for ₹3,50,000 by issuing cheque.

Correct option is A

Acquiring machinery is classified as an investing activity since it involves purchasing long-term assets. The issuance of a cheque for ₹3,50,000 results in a cash outflow as it represents an expenditure for acquiring these assets, reflecting an outflow of funds from the company's investing activities.